# tbillyield2disc

Convert Treasury bill yield to equivalent discount

## Syntax

``Discount = tbillyield2disc(Yield,Settle,Maturity)``
``Discount = tbillyield2disc(___,Type)``

## Description

example

````Discount = tbillyield2disc(Yield,Settle,Maturity)` converts the yield on some Treasury bills into their respective discount rates.```

example

````Discount = tbillyield2disc(___,Type)` adds an optional argument for `Type`. ```

## Examples

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Given a Treasury bill with these characteristics, compute the discount rate.

```Yield = 0.0497; Settle = '01-Oct-02'; Maturity = '31-Mar-03'; Discount = tbillyield2disc(Yield,Settle,Maturity)```
```Discount = 0.0485 ```

Given a Treasury bill with these characteristics, compute the discount rate using datetime inputs.

```Yield = 0.0497; Settle = datetime(2002,10,1); Maturity = datetime(2003,3,31); Discount = tbillyield2disc(Yield,Settle,Maturity)```
```Discount = 0.0485 ```

## Input Arguments

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Yield of Treasury bills, specified as a scalar of a `NTBILLS`-by-`1` vector of decimal values.

Data Types: `double`

Settlement date of the Treasury bill, specified as a scalar or a `NTBILLS`-by-`1` vector using a datetime array, string array, or date character vectors.

To support existing code, `tbillyield2disc` also accepts serial date numbers as inputs, but they are not recommended.

Data Types: `char` | `string` | `datetime`

Maturity date of the Treasury bill, specified as a scalar or a `NTBILLS`-by-`1` vector using a datetime array, string array, or date character vectors.

To support existing code, `tbillyield2disc` also accepts serial date numbers as inputs, but they are not recommended.

Data Types: `char` | `string` | `datetime`

(Optional) Yield type (determines how to interpret values entered in `Yield`), specified as a numeric value of `1` or `2` using a scalar or a `NTBILLS`-by-`1` vector.

Note

The bond-equivalent yield basis is actual/365. The money-market yield basis is actual/360.

Data Types: `double`

## Output Arguments

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Discount rates of the Treasury bills, returned as a `NTBILLS`-by-`1` vector.

 SIA Fixed Income Securities Formulas for Price, Yield, and Accrued Interest. Volume 1, 3rd edition, pp. 44–45.

 Krgin, D. Handbook of Global Fixed Income Calculations. Wiley, 2002.

 Stigum, M., Robinson, F. Money Market and Bond Calculation. McGraw-Hill, 1996.